An Analysis of the effects of Cyber Threats on the Uptake of Digital Financial Services in Kitwe (Chisokone) - Zambia

Abstract

This study explores the impact of cyber threats on the adoption and usage of digital financial services in Kitwe (Chisokone), Zambia. Amidst the rapid digital transformation, this research provides a comprehensive understanding of the digital financial landscape, highlighting the availability and accessibility of various digital financial platforms, the nature and frequency of cyber-attacks, the perceived security of these platforms, and the effectiveness of regulatory protections for users. Employing a mixed-method approach, including surveys and literature review, the study gathers data from both users and providers of digital financial services. The findings reveal that while digital financial platforms are widely available and generally user-friendly, there is a significant prevalence of cyber-attacks, such as hacking and phishing, which raises concerns about the security measures in place. Moreover, the study uncovers a notable discrepancy between users' perception and the actual effectiveness of regulatory authorities in monitoring and safeguarding these platforms. The research concludes with the recommendation for enhanced security protocols, improved user education, and strengthened regulatory oversight to bolster the resilience and trustworthiness of digital financial services in Zambia. This study contributes to the understanding of digital finance in a developing economy context, offering insights for policymakers, financial service providers, and users to navigate the challenges posed by cyber threats effectively. Keywords: Cyber threats, user security, regulatory oversight, and financial technology (FinTech) in Kitwe, Zambia